MIRA INFORM REPORT

 

 

Report Date :

23.12.2013

 

IDENTIFICATION DETAILS

 

Name :

SIEGWERK MALAYSIA SDN. BHD.

 

 

Formerly Known As :

SICPA (MALAYSIA) SDN BHD

 

 

Registered Office :

6, Jalan Firma 1/5, Kawasan Perindustrian Tebrau, 81100 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

04.07.1970

 

 

Com. Reg. No.:

9744-V

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Manufacturing of Printing Inks, Marketing of Graphic Art Supplies & Accessories

 

 

No. of Employees :

146

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy''s dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to begin to reduce government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 35% of government revenue in 2011. Bank Negera Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia''s exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB has raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists and other vested interests

Source : CIA


EXECUTIVE SUMMARY

 

 

 

REGISTRATION NO.

:

9744-V

COMPANY NAME

:

SIEGWERK MALAYSIA SDN. BHD.

FORMER NAME

:

SICPA (MALAYSIA) SDN BHD (23/11/2005)
SICPA COLLIE (MALAYSIA) SDN BHD (29/05/1993)
COLLIE (MALAYSIA) SDN BHD (21/10/1989)
K.D. JAMES CHEN (MALAYSIA) SDN BHD (15/12/1976)

INCORPORATION DATE

:

04/07/1970

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

NO 6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

TEL.NO.

:

07-3547600

FAX.NO.

:

07-3525294

WEB SITE

:

WWW.SIEGWERK-GROUP.COM

CONTACT PERSON

:

JAN-DIRK HENRICH ( GENERAL MANAGER )

 

 

 

INDUSTRY CODE

:

20222

PRINCIPAL ACTIVITY

:

MANUFACTURING OF PRINTING INKS, MARKETING OF GRAPHIC ART SUPPLIES & ACCESSORIES

AUTHORISED CAPITAL

:

MYR 33,523,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.
PREFERENCE SHARE 28,523,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 29,282,900.00 DIVIDED INTO
ORDINARY SHARES 4,400,000 CASH AND 600,000 OTHERWISE OF MYR 1.00 EACH.
PREFERENCE SHARES 24,274,100 CASH AND 8,800 OTHERWISE OF MYR 1.00 EACH.

 

 

 

SALES

:

MYR 107,152,007 [2012]

NET WORTH

:

MYR 32,788,530 [2012]

 

 

 

STAFF STRENGTH

:

146 [2013]

BANKER (S)

:

MALAYAN BANKING BHD
UNITED MALAYAN BANKING CORPORATION BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) manufacturing of printing inks, marketing of graphic art supplies & accessories.

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

The immediate holding company of the Subject is SIEGWERK SINGAPORE PTE LTD, a company incorporated in SINGAPORE.

The ultimate holding company of the Subject is SIEGWERK DRUCKFARBEN AG, a company incorporated in GERMANY.

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

28/06/2013

MYR 33,523,000.00

MYR 29,282,900.00

 

The major shareholder(s) of the Subject are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SIEGWERK SINGAPORE PTE LTD

71, TOH GUAN ROAD EAST, #04-02, TCH TECH CENTRE, 608598, SINGAPORE.

196700221W

29,282,900.00

100.00

 

 

 

---------------

------

 

 

 

29,282,900.00

100.00

 

 

 

============

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MS. SELVI A/P MURUGIAH

Address

:

155, JALAN DESA MESRA, TAMAN DESA, 58100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A0696361

New IC No

:

661017-07-5526

Date of Birth

:

17/10/1966

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

30/08/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MR. PRAKASH KUMAR A/L VELUMAYIL

Address

:

19, JALAN LEMBAH 4, BANDAR SERI ALAM, 81750 MASAI, JOHOR, MALAYSIA.

IC / PP No

:

A1552370

New IC No

:

691220-01-5235

Date of Birth

:

20/12/1969

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

01/08/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

RALF WOLFGANG HILDENBRAND

Address

:

AM MUHLENBERG 9, D-53721 SIEGBURG, GERMANY.

IC / PP No

:

5369285840

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

15/06/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

MR. JAN-DIRK HENRICH

Address

:

63, HOLLAND ROAD, #03-08, VERDURE @ HOLLAND PARK, 258887, SINGAPORE.

IC / PP No

:

C748KYZH2

 

 

 

 

 

 

 

 

 

Nationality

:

DUTCH

Date of Appointment

:

01/11/2012



MANAGEMENT

 

 

 

1)

Name of Subject

:

JAN-DIRK HENRICH

 

Position

:

GENERAL MANAGER

 

 

 

 

 

2)

Name of Subject

:

LEE PENG YONG

 

Position

:

FINANCE MANAGER

 

 

 

 

 

3)

Name of Subject

:

ZURINA

 

Position

:

ACCOUNTANT

 

 

 

 

 

4)

Name of Subject

:

FARIDAH AWAB

 

Position

:

HUMAN RESOURCE MANAGER

 

 

 

 

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG

Auditor' Address

:

MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR DAMANSARA, DAMANSARA HEIGHTS, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ALWIZAH AL-YAFII BINTI AHMAD KAMAL

 

 

 

 

 

New IC No

:

740228-07-5492

 

Address

:

12,JALAN PANTAI 9/7, 46000 PETALING JAYA, SELANGOR, MALAYSIA.

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

 

 

 

 

 

 

 

2)

Name

:

UNITED MALAYAN BANKING CORPORATION BHD

 

 

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

19/08/1977

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 1.00

Satisfied

2

22/08/1978

N/A

HONGKONG BANK MALAYSIA BERHAD

MYR 1.00

Satisfied

3

25/10/1990

N/A

UTAMA WARDLEY BERHAD

MYR 3,000,000.00

Satisfied

4

18/12/1991

N/A

UNITED MALAYAN BANKING CORPORATION BHD

MYR 7,000,000.00

Satisfied

5

03/03/1992

N/A

UTAMA WARDLEY BHD

MYR 3,000,000.00

Satisfied

6

01/08/1992

N/A

UNITED MALAYAN BANKING CORPORATION BERHAD

MYR 7,000,000.00

Satisfied

7

25/10/1993

N/A

MALAYAN BANKING BERHAD

MYR 23,200,000.00

Unsatisfied

8

05/09/1995

N/A

MALAYAN BANKING BERHAD

MYR 4,000,000.00

Satisfied

 

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection since 1990. Information was provided by third party where the debt amount can be disputed. Please check with creditors for confirmation as alleged debts may have been paid since recorded or are being disputed.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

90%

Overseas

:

YES

Percentage

:

10%

Import Countries

:

ASIA,UNITED STATES,EUROPE



The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

X

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

 

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

 

 

 

Export Market

:

SINGAPORE

THAILAND

PHILIPPINES

AUSTRALIA

HONG KONG

INDIA

INDONESIA

PAKISTAN

CHINA

SOUTH KOREA

TAIWAN

VIETNAM

CAMBODIA

MYANMAR

Credit Term

:

30 - 60 DAYS

 

 

 

 

 

 

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Products manufactured

:

PRINTING INKS

 

 

 

Brand Name

:

SICPA , SIEGWERK

 

 

 

 

Award

:

1 ) MS ISO 9001 : 2000 Year :2001

 

 

 

 

Member(s) / Affiliate(s)

:

FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION (MPMA)

SMI ASSOCIATION OF MALAYSIA

SMALL & MEDIUM ENTERPRISE

CHEMICAL INDUSTRIES COUNCIL OF MALAYSIA (CICM)

 

 

 

Ownership of premises

:

OWNED

 

 

Total Number of Employees:

 

YEAR

2013

2011

2010

2009

2008

 

 

 

 

 

GROUP

N/A

N/A

N/A

N/A

N/A

 

 

 

 

COMPANY

146

160

150

148

154

 

 

 

 

 

Branch

:

YES

 

No of Branches

:

3

 

 

 

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of printing inks, marketing of graphic art supplies & accessories.

The Subject specializes in :

* Printing ink additives and printing aids
* Printing lacquers
* Packaging inks for offset, flexographic and rotogravure printing. (Tobacco Packaging, Flexible Packaging, Corrugated Carton, Label Packaging, Sheed Fed & UV, Paper & Board & Decorative)

We were informed that the warehouse is located at the same premises to keep its products and materials.

The Subject utilizes the advanced automated and semi-automated machineries to ensure production of high quality products.

Besides that the Subject has branches located in Selangor and Penang.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-3547600

Match

:

N/A

 

 

 

Address Provided by Client

:

NO 6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU,81100,JOHOR BAHRU,JOHOR.

Current Address

:

NO 6, JALAN FIRMA 1/5, KAWASAN PERINDUSTRIAN TEBRAU, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


On 17th December 2013 we contacted one of the staff from the Accounts Department. She provided some information.

FINANCIAL ANALYSIS

 

 

Profitability

 

 

 

 

 

 

Turnover

:

Increased

[

2008 - 2012

]

 

Profit/(Loss) Before Tax

:

Increased

[

2008 - 2012

]

 

Return on Shareholder Funds

:

Acceptable

[

15.09%

]

 

Return on Net Assets

:

Acceptable

[

16.03%

]

 

 

 

 

 

 

 

 

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Unfavourable

[

65 Days

]

 

Debtor Ratio

:

Unfavourable

[

81 Days

]

 

Creditors Ratio

:

Favourable

[

53 Days

]

 

 

 

 

 

 

 

 

The Subject could be incurring higher holding cost. As its capital was tied up in stocks, it could face liquidity problems. The high debtors' ratio could indicate that the Subject was weak in its credit control. However, the Subject could also giving longer credit periods to its customers in order to boost its sales or to capture / retain its market share. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Favourable

[

1.05 Times

]

 

Current Ratio

:

Unfavourable

[

1.69 Times

]

 

 

 

 

 

 

 

 

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

17.06 Times

]

 

Gearing Ratio

:

Favourable

[

0.27 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was lowly geared thus it had a low financial risk. The Subject was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the Subject being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STABLE

 

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Population ( Million)

28.13

28.35

28.70

29.30

29.80

Gross Domestic Products ( % )

<0.5>

7.2

5.1

5.6

5.3

Domestic Demand ( % )

2.9

6.3

8.2

9.4

5.6

Private Expenditure ( % )

<2.7>

8.1

8.2

8.0

7.4

Consumption ( % )

0.7

6.7

7.1

1.0

5.7

Investment ( % )

<17.2>

17.7

12.2

11.7

13.3

Public Expenditure ( % )

5.2

3.8

8.4

13.3

1.2

Consumption ( % )

3.1

0.2

16.1

11.3

<1.2>

Investment ( % )

8.0

2.8

<0.3>

15.9

4.2

 

 

 

 

 

 

Balance of Trade ( MYR Million )

89,650

118,356

116,058

106,300

110,700

Government Finance ( MYR Million )

<28,450>

<40,482>

<45,511>

<42,297>

<39,993>

Government Finance to GDP / Fiscal Deficit ( % )

<4.8>

<5.6>

<5.4>

<4.5>

<4.0>

Inflation ( % Change in Composite CPI)

<5.2>

5.1

3.1

1.6

2.5

Unemployment Rate

4.5

3.9

3.3

3.2

3.0

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

331

329

415

427

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.87

2.20

3.50

2.20

-

Average 3 Months of Non-performing Loans ( % )

11.08

15.30

14.80

14.70

-

Average Base Lending Rate ( % )

5.53

6.30

6.60

6.53

-

Business Loans Disbursed( % )

10.5

14.7

15.3

32.2

-

Foreign Investment ( MYR Million )

22,156.8

22,517.9

23,546.1

26,230.4

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

41,578

44,148

45,455

45,441

-

Registration of New Companies ( % )

<0.1>

6.2

3.0

<0.0>

-

Liquidation of Companies ( No. )

39,075

25,585

132,476

-

-

Liquidation of Companies ( % )

39.6

<34.5>

417.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

312,581

271,414

284,598

324,761

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,345

19,738

20,121

-

-

Business Dissolved ( % )

2.4

2.0

1.9

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

486.3

543.6

535.1

552.2

-

Cellular Phone Subscribers ( Million )

30.1

32.8

35.3

38.5

-

Tourist Arrival ( Million Persons )

23.6

24.6

24.7

25.0

-

Hotel Occupancy Rate ( % )

58.0

63.0

60.6

62.4

-

 

 

 

 

 

 

Credit Cards Spending ( % )

12.8

14.1

15.6

12.6

-

Bad Cheque Offenders (No.)

36,667

33,568

32,627

26,982

-

Individual Bankruptcy ( No.)

16,228

18,119

19,167

19,575

-

Individual Bankruptcy ( % )

16.7

11.7

5.8

2.1

-

 

 

 

 

 

 



INDUSTRIES ( % of Growth ):

2009

2010

2011

2012*

2013**

 

 

 

 

 

 

Agriculture

0.4

2.1

5.9

0.6

2.4

Palm Oil

<1.1>

<3.4>

10.8

<2.8>

-

Rubber

<19.8>

9.9

6.1

<0.6>

-

Forestry & Logging

<5.9>

<3.3>

<7.6>

<2.2>

-

Fishing

5.5

5.6

2.1

<0.7>

-

Other Agriculture

9.0

7.9

7.1

6.4

-

Industry Non-Performing Loans ( MYR Million )

413.7

508.4

634.1

-

-

% of Industry Non-Performing Loans

1.3

2.1

3.2

-

-

 

 

 

 

 

 

Mining

<3.8>

0.2

<5.7>

1.5

2.7

Oil & Gas

2.1

0.5

<1.7>

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

44.2

49.7

46.5

-

-

% of Industry Non-performing Loans

0.1

0.1

0.1

-

-

 

 

 

 

 

 

Manufacturing #

<9.4>

11.4

4.7

4.2

4.9

Exported-oriented Industries

<19.0>

12.1

2.8

4.1

-

Electrical & Electronics

<30.3>

28.4

<4.9>

1.6

-

Rubber Products

<10.1>

25.3

15.4

3.6

-

Wood Products

<24.1>

20.1

<4.9>

4.6

-

Textiles & Apparel

<19.5>

<0.4>

14.8

<7.1>

-

Domestic-oriented Industries

<9.8>

16.3

6.5

8.6

-

Food, Beverages & Tobacco

0.2

3.0

4.2

-

-

Chemical & Chemical Products

<7.7>

16.2

5.5

9.9

-

Plastic Products

<9.1>

2.4

3.8

-

-

Iron & Steel

<32.7>

29.3

2.4

-

-

Fabricated Metal Products

<2.5>

14.9

25.2

-

-

Non-metallic Mineral

<15.5>

20.2

27.1

6.6

-

Transport Equipment

<13.5>

36.5

<10.4>

13.7

-

Paper & Paper Products

<5.0>

18.7

14.8

<7.8>

-

Crude Oil Refineries

0.2

<11.4>

9.3

-

-

Industry Non-Performing Loans ( MYR Million )

6,007.3

6,217.5

6,537.2

-

-

% of Industry Non-Performing Loans

18.3

23.8

25.7

-

-

 

 

 

 

 

 

Construction

5.8

5.1

4.4

15.5

11.2

Industry Non-Performing Loans ( MYR Million )

3,241.8

4,038.5

3,856.9

-

-

% of Industry Non-Performing Loans

9.9

10.7

10.2

-

-

 

 

 

 

 

 

Services

2.6

6.5

6.4

5.5

5.6

Electric, Gas & Water

0.4

8.5

5.6

4.8

-

Transport, Storage & Communication

1.6

7.7

6.5

7.3

-

Wholesale, Retail, Hotel & Restaurant

2.8

4.7

5.2

6.9

-

Finance, Insurance & Real Estate

3.8

6.1

6.3

6.5

-

Government Services

2.0

6.7

7.6

5.6

-

Other Services

4.4

4.2

5.4

5.7

-

Industry Non-Performing Loans ( MYR Million )

6,631.3

7,384.6

6,825.2

-

-

% of Industry Non-Performing Loans

20.2

25.7

23.4

-

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)

 

INDUSTRY ANALYSIS

 

MSIC CODE

20222 : Manufacture of printing ink

 

 

INDUSTRY :

MANUFACTURING

 

 

 

The Manufacturing sector is one of the important sectors to the growth of the Malaysian economy. According to Ministry of Finance, the manufacturing sector is expected to grow 4.9% in year 2013. Export oriented-industries are expected to benefit from the higher growth of global trade, while domesticoriented industries expand in line with the better consumer sentiment and business confidence. The resource-based industries are envisaged to grow steadily attributed to improved demand for petroleum, chemical, rubber and plastic products. With better job prospects and higher disposable income, the transportation equipment subsector, in particular, the passenger car segment is expected to expand.

 

Value-added of the manufacturing sector expanded 5% during the first half of 2012. Output of the sector rose 5.2% during the first sevenmonths of 2012 in line with the increase in sales value of manufactured products by 6.5% to RM363.1 billion. Output from domesticoriented industries continued to expand 8.6% while export-oriented industries grew 4.1%.

 

According to the Department of Statistics, the sales value of the Manufacturing sector in January 2013 posted a growth of 7.4% (RM3.6 billion) to record RM52.4 billion as compared to RM48.8 billion reported in year 2012. Meanwhile, month-on-month basis, the sales value has decreased by 0.4% (RM0.2 billion) as compared with the preceding month. The sales value in December 2012 has been revised positive 7.5% year-on-year to record RM52.6 billion.

 

Output of rubber products increased 3.6% in the first seven month of 2012 mainly supported by continuous demand for rubber gloves. Output of rubber gloves grew 5.9% on account of the expansion in the global healthcare industry and wider usage of gloves in other sectors. Similarly, output of catheters, especially for use in medical appliances, also registered a strong growth of 12.6%. Nevertheless, production of rubber tyres and tubes reduced 10.9% in tandem with slowing external demand from the automotive industry, especially China.

 

Meanwhile, production of wood and wood products rebounded 4.6% largely supported by higher demand for wooden and cane furniture (33.5%). The positive performance was attributed to vibrant higher demand from major export destinations such as China and the United States (US) for Malaysian-made furniture. Demand from China accelerated further following the country’s rising income level and the implementation of zero import duty on Malaysian made-furniture. Malaysia government has growth target of 6.5% for wood based furniture where estimated to reach up to RM53 billion by year 2020.The government providing pioneer status for tax exemption and investment tax allowance for this industry as a boost up step towards produce good quality product and to meet the world demand.

 

The output of chemicals and chemical products rose 9.9% in the first seven month of year 2012 on account of increasing demand for plastic products (11.8%) and basic chemicals (11.1%). External demand for plastic packaging materials surged during the early part of the year 2012, particularly from Japan and Thailand, as manufacturers resumed operations, which were interrupted by natural calamities and power outages. Chemical production are expected to show 7.5 % in year 2013 inline with Malaysia as one of the largest contributor in world Chemicals & Chemical industries.

 

Tax and non-tax incentives provided by goverment encourage manufacturers to move up the value chain of manufacturing industry. The new growth initiatives by goverment in the manufacturing sector such assolar and medial services can be important drivers of growth apart from helping to diversify the manufacturing base and contributing to the resilience of the sector.

 

 

OVERALL INDUSTRY OUTLOOK : Average Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 1970, the Subject is a Private Limited company, focusing on manufacturing of printing inks, marketing of graphic art supplies & accessories. The Subject has been in business for over 4 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term.  The Subject is expected to enjoy a stable market shares. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The Subject has huge capital position.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject is a fairly large and rapidly growing company with over 146 staff in its operations Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. To improve its quality products and services, we noted that the Subject has received a number of certifications & awards. This will improve the customer's confidence level to the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a lowly geared company, the Subject is exposed to low financial risk as it is mainly dependent on its internal funds to finance its business needs. Given a positive net worth standing at MYR 32,788,530, the Subject should be able to maintain its business in the near terms.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth. The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject normally.

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

SIEGWERK MALAYSIA SDN. BHD.

 

Financial Year End

2012-12-31

2011-12-31

2010-12-31

2009-12-31

2008-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

FULL

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

 

 

 

 

 

 

TURNOVER

107,152,007

93,980,697

73,654,953

62,025,131

58,394,268

 

----------------

----------------

----------------

----------------

----------------

Total Turnover

107,152,007

93,980,697

73,654,953

62,025,131

58,394,268

Costs of Goods Sold

<70,475,555>

<64,452,428>

<49,142,337>

-

-

 

----------------

----------------

----------------

----------------

----------------

Gross Profit

36,676,452

29,528,269

24,512,616

-

-

 

----------------

----------------

----------------

----------------

----------------

 

 

 

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

4,947,577

2,776,055

7,981,049

289,325

<3,758,423>

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

4,947,577

2,776,055

7,981,049

289,325

<3,758,423>

Taxation

<177>

<375>

0

-

-

 

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

4,947,400

2,775,680

7,981,049

289,325

<3,758,423>

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

 

 

 

As previously reported

<84,297,909>

<87,073,589>

<95,054,638>

<95,343,963>

<91,585,540>

 

----------------

----------------

----------------

----------------

----------------

As restated

<84,297,909>

<87,073,589>

<95,054,638>

<95,343,963>

<91,585,540>

 

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

<79,350,509>

<84,297,909>

<87,073,589>

<95,054,638>

<95,343,963>

 

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

<79,350,509>

<84,297,909>

<87,073,589>

<95,054,638>

<95,343,963>

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

INTEREST EXPENSE (as per notes to P&L)

 

 

 

 

 

Bank overdraft

156,237

118,036

101,203

57,050

184,243

Bankers' acceptance

151,217

207,353

189,460

-

-

Others

639

44,555

528,139

125,803

2,108,857

 

----------------

----------------

----------------

----------------

----------------

 

308,093

369,944

818,802

182,853

2,293,100

 

 

 

BALANCE SHEET

 

 

SIEGWERK MALAYSIA SDN. BHD.

 

ASSETS EMPLOYED:

 

 

 

 

 

FIXED ASSETS

12,068,522

12,102,128

12,263,341

10,989,141

12,083,165

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

12,068,522

12,102,128

12,263,341

10,989,141

12,083,165

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Stocks

19,114,616

13,764,975

18,135,445

13,782,822

12,535,293

Trade debtors

23,811,330

17,935,762

14,808,029

14,157,688

25,728,454

Other debtors, deposits & prepayments

590,698

1,085,697

4,626,146

2,994,881

1,368,320

Amount due from holding company

21,070

-

-

-

106,529

Amount due from subsidiary companies

808,493

1,830,325

-

-

2,496,795

Cash & bank balances

6,509,427

5,908,720

3,054,329

4,066,126

1,886,652

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

50,855,634

40,525,479

40,623,949

35,001,517

44,122,043

 

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

62,924,156

52,627,607

52,887,290

45,990,658

56,205,208

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade creditors

10,166,634

7,535,003

11,046,874

9,211,835

9,194,118

Other creditors & accruals

8,960,830

8,317,966

9,935,235

12,808,707

4,078,700

Bank overdraft

5,539,926

1,309,719

3,312,035

3,729

4,174,287

Bill & acceptances payable

3,360,000

3,921,000

3,527,696

5,193,032

4,874,000

Amounts owing to holding company

1,752,030

3,540,877

-

-

48,400

Amounts owing to subsidiary companies

356,206

161,912

-

-

15,529,371

 

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

30,135,626

24,786,477

27,821,840

27,217,303

37,898,876

 

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

20,720,008

15,739,002

12,802,109

7,784,214

6,223,167

 

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

32,788,530

27,841,130

25,065,450

18,773,355

18,306,332

 

=============

=============

=============

=============

=============

 

 

 

 

 

 

SHARE CAPITAL

 

 

 

 

 

Ordinary share capital

29,282,900

29,282,900

29,282,900

4,282,900

4,282,900

 

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

29,282,900

29,282,900

29,282,900

4,282,900

4,282,900

 

 

 

 

 

 

RESERVES

 

 

 

 

 

Share premium

62,333,139

62,333,139

62,333,139

62,333,139

62,333,139

Capital reserve

20,523,000

20,523,000

20,523,000

20,523,000

20,523,000

Retained profit/(loss) carried forward

<79,350,509>

<84,297,909>

<87,073,589>

<95,054,638>

<95,343,963>

 

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

3,505,630

<1,441,770>

<4,217,450>

<12,198,499>

<12,487,824>

 

 

 

 

 

 

 

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

32,788,530

27,841,130

25,065,450

<7,915,599>

<8,204,924>

 

 

 

 

 

 

LONG TERM LIABILITIES

 

 

 

 

 

Others

-

-

-

26,688,954

26,511,256

 

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

-

-

-

26,688,954

26,511,256

 

----------------

----------------

----------------

----------------

----------------

 

32,788,530

27,841,130

25,065,450

18,773,355

18,306,332

 

=============

=============

=============

=============

=============

 

 

 

FINANCIAL RATIO

 

 

SIEGWERK MALAYSIA SDN. BHD.

 

TYPES OF FUNDS

 

 

 

 

 

Cash

6,509,427

5,908,720

3,054,329

4,066,126

1,886,652

Net Liquid Funds

<2,390,499>

678,001

<3,785,402>

<1,130,635>

<7,161,635>

Net Liquid Assets

1,605,392

1,974,027

<5,333,336>

<5,998,608>

<6,312,126>

Net Current Assets/(Liabilities)

20,720,008

15,739,002

12,802,109

7,784,214

6,223,167

Net Tangible Assets

32,788,530

27,841,130

25,065,450

18,773,355

18,306,332

Net Monetary Assets

1,605,392

1,974,027

<5,333,336>

<32,687,562>

<32,823,382>

BALANCE SHEET ITEMS

 

 

 

 

 

Total Borrowings

8,899,926

5,230,719

6,839,731

5,196,761

9,048,287

Total Liabilities

30,135,626

24,786,477

27,821,840

53,906,257

64,410,132

Total Assets

62,924,156

52,627,607

52,887,290

45,990,658

56,205,208

Net Assets

32,788,530

27,841,130

25,065,450

18,773,355

18,306,332

Net Assets Backing

32,788,530

27,841,130

25,065,450

<7,915,599>

<8,204,924>

Shareholders' Funds

32,788,530

27,841,130

25,065,450

<7,915,599>

<8,204,924>

Total Share Capital

29,282,900

29,282,900

29,282,900

4,282,900

4,282,900

Total Reserves

3,505,630

<1,441,770>

<4,217,450>

<12,198,499>

<12,487,824>

LIQUIDITY (Times)

 

 

 

 

 

Cash Ratio

0.22

0.24

0.11

0.15

0.05

Liquid Ratio

1.05

1.08

0.81

0.78

0.83

Current Ratio

1.69

1.63

1.46

1.29

1.16

WORKING CAPITAL CONTROL (Days)

 

 

 

 

 

Stock Ratio

65

53

90

81

78

Debtors Ratio

81

70

73

83

161

Creditors Ratio

53

43

82

54

57

SOLVENCY RATIOS (Times)

 

 

 

 

 

Gearing Ratio

0.27

0.19

0.27

<0.66>

<1.10>

Liabilities Ratio

0.92

0.89

1.11

<6.81>

<7.85>

Times Interest Earned Ratio

17.06

8.50

10.75

2.58

<0.64>

Assets Backing Ratio

1.12

0.95

0.86

4.38

4.27

PERFORMANCE RATIO (%)

 

 

 

 

 

Operating Profit Margin

4.62

2.95

10.84

0.47

<6.44>

Net Profit Margin

4.62

2.95

10.84

0.47

<6.44>

Return On Net Assets

16.03

11.30

35.11

2.52

<8.00>

Return On Capital Employed

13.71

10.79

31.01

2.51

<6.52>

Return On Shareholders' Funds/Equity

15.09

9.97

31.84

<3.66>

45.81

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

 

 

 

 

 

Contingent Liabilities

0

0

0

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.24

UK Pound

1

Rs.101.80

Euro

1

Rs.84.87

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.